AC man pleads guilty to disability insurance fraud

TRENTON, , N.J. -- An Atlantic County man has pleaded guilty to stealing more than $5,200 in disability insurance monies.

Da Wei Chen, 49, of Atlantic City, pleaded guilty on Oct. 31 before Superior Court Judge Albert J. Garofolo in Atlantic County to a criminal accusation which charged him with third-degree theft by deception.

At the guilty plea hearing, Chen admitted that on June 15, 2006, he fraudulently advised Bally's Hotel and Casino, where he was working as a chef, that he was unable to continue working, claiming osteoarthritis and related ailments. Chen subsequently applied to the New Jersey Department of Labor for disability medical leave. Chen further admitted that, after he left Bally's, he applied for a mercantile license from the municipality of Ocean City.

Chen admitted that he then opened a Chinese massage business known as Sea Wave Massage in the Surf Mall in Ocean City, which he operated seven days a week, 12 hours a day, during the beach season. At Sea Wave Massage, Chen provide massages to customers in exchange for payment. He admitted that he wrongfully collected approximately $5,290 in disability payments from the New Jersey Department of Labor after he left employment at Bally's and began operating Sea Wave Massage.

Chen is scheduled to appear before Judge Garofolo on Jan. 28 to be sentenced. Crimes of the third degree carry sentences of up to 5 years in state prison and a criminal fine of up to $15,000.